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Are Ceuta and Melilla Tax Heaven?

18 November 2020, 18:32
Votes: 1

Idoia Villanueva Ruiz, a Spanish politician, member of Podemos, and the European Parliament, has recently raised the question about the taxation for the gambling industry in such areas as Ceuta and Melilla.

Are Ceuta and Melilla Tax Heaven?

According to the recent news about the gambling market in Spain, the politician has criticized the fact that some regions have become tax heaven for industry-related companies. She has appealed to the European Commission with the question about what measures it takes to prevent operators from turning the regions with tax concessions into tax shelters. 

The aim of tax relief was to make the markets competitive

In the letter to the European Commission, Idoia Villanueva has stated that taxes in Ceuta and Melilla have been reduced to ten percent. In other areas, the tax rate is twenty percent. The main reason for this decrease was the aim to make these markets more competitive in comparison to Gibraltar.

However, such changes only induced some operators to take advantage of the opportunity to pay smaller taxes to the state coffers. For instance, Codere, Spain’s gambling giant, decided to relocate its headquarters from Madrid to Melilla. It isn’t the single case as some companies in Ireland and the Netherlands have acted in the same way. These two countries are other examples of territories that have loosened restrictions and reduced taxes. It leads to investment from foreign industry participants, which pay smaller amount of taxes to their native countries.

The politician has emphasized that such an approach to lowered taxation may result in negative consequences. That is why the European Commission should take steps to solve the problem.

Read more: How to launch an online casino in Spain?

Read more: Is the operation of an online casino in the Netherlands legal?

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